Feb 22, 2010
If morning indeed shows the day, long term IPO investors can hope to make big gains in 2010. Out of the nine new listings that took place in 2010, six are trading with an average premium of 18 per cent.
Just three new listings are trading at a discount to their IPO offer prices, data shows. IPO listings that are trading at a premium to their offer prices include the likes of Jubilant Foodworks (56.41 per cent), Infinite Computer Solutions India (19.06 per cent), MBL Infrastructures (9.25 percent), DB Corp (9.01 per cent), JSW Energy (7.20 per cent) and Syncom Healthcare (6.67 per cent).
For Jubilant Foodworks, it has been a steady climb since it was listed on February 8. Shares of Infinite Computer Solutions have also risen to Rs 196.45 apiece from its listing price of Rs 165.
Among latest listings, Syncom Healthcare – whis was listed on Feb 15th- has seen a steady drop in price, although it still trades above its issue price of Rs 75 apiece.
“While this is very early to comment on this, the good performance of these listings in the secondary market has had a positive impact on the primary market. More IPOs are in the offering and a clear picture will emerge after more time. For, new listings trading at 7-10% premium to their issue prices is not huge. It’s too early to judge if the pricing of these IPOs was good or not,” said Jagannadham Thunuguntla, equity head at New Delhi- based merchant bank SMC Capitals.
Meanwhile, investors in other new listings such as Godrej Properties, Thangamayil Jewellery and Vascon Engineers have seen their shares (as on BSE) drop below their offer prices.